MNI BRIEF: No Ruling In Hearing On Firing Of Fed's Cook

A first hearing in Federal Reserve Governor Lisa Cook's request for a temporary restraining order to allow her to continue serving on the Fed's board ended Friday without a ruling. The parties are set to meet in court again Tuesday. 

U.S. District Court Judge Jia Cobb said Friday she will set an expedited schedule and expects the proceedings to take "weeks." She requested Cook's lawyer Abbe David Lowell submit a reply to the federal government's response by early next week. 

"I understand this is a unique body," Cobb said Friday, acknowledging the Fed's special status. 

The nearly two-hour hearing included discussion of the legal meaning and case law surrounding a "for cause" firing. Under the Federal Reserve Act, a governor can only be removed by the president “for cause,” and the term isn't defined. No Fed governor has previously been fired by the president.  

Lowell argued the administration's allegation that Cook committed mortgage fraud is not "cause" but rather a pretext for Trump's efforts to control interest rates. (See: MNI: Legal Experts Say Fed's Cook Will Prevail Against Trump)

"I am uncomfortable with the pretext argument," Cobb said. "I am also uncomfortable with someone saying they want to fire in order to get a majority" of the Federal Reserve Board, referring to Trump's comments earlier in the week in the Oval Office. Cobb also requested further clarification from the lawyers on legal precedents, definitions and authorities on a "for cause" firing. 

DOJ attorney Yaakov Roth said Trump’s decision to fire Cook for cause Monday cannot be reviewed and she has shown herself to be unfit for the job. 

A lawyer for the Fed on Friday called for a “prompt” ruling.